Pay-If-Paid Clause
A “pay if paid” clause is a payment clause that states that the contractor is obligated to pay its subcontractors only if the contractor receives payment from the owner.
A clause that states the a subcontractor will only be paid by the general contractor if the GC is paid by the owner. Many states, such as California, have prohibited these types of clauses as against public policy.
Words related to “Pay-If-Paid Clause”
